Dubai’s rise as a leading global property market is driving up prices, prompting increased interest in real estate investment trusts (REITs) and fractional ownership apps requiring payments as low as $136.
While property ownership remains the simplest way to enter the market, 17 consecutive quarters of price increases have made this option less accessible. Emaar Properties PJSC has nearly quintupled from its 2020 low, and Tecom Group has gained about 18% since its 2022 listing.
In response, platforms like Stake are gaining popularity. Stake’s app enables users to invest in property fractions starting at 500 dirhams ($136). The firm recently secured funding from Abu Dhabi’s Mubadala Investment Co.
Simultaneously, REITs are becoming attractive alternatives by offering access to income-generating properties without direct ownership. Dubai Holding, owned by the city’s ruler, is considering listing its residential and retail property portfolios next year via REIT structures, giving investors access to high-value assets managed by a prominent government-linked developer.
“REITs provide greater accessibility, enabling investors to enter the market with smaller capital amounts,” said Thierry Delvaux, CEO of Equitativa Group, which manages Emirates REIT, one of Dubai’s three REIT managers.
REITs lower entry costs, provide liquidity akin to public equities, and offer professional management, explained Sanjay Vig, managing director at Al Mal Capital REIT. However, global and local challenges have impacted their reputation. Blackstone Inc. faced redemptions affecting its second-quarter results, while Emirates REIT was fined for governance issues and, along with ENBD REIT, posted losses in recent years.
This time, reforms like long-term visas for property investors and eased foreign ownership rules are creating a more favorable environment. These changes enable REITs to attract international capital and a wider investor base, Delvaux noted.
New REITs would support the government’s push to deepen domestic capital markets, a key goal for Dubai, which has seen significant stock market activity and new listings. “REITs have room to grow in the UAE, backed by strong sponsors with robust governance,” said Samer Deghaili, HSBC’s regional co-head of investment banking.
In addition to REITs, tech-driven platforms are reshaping Dubai’s property market. Online management platform Keyper raised $34 million earlier this year, while Stake has secured $27 million and acquired over 300 properties worth 540 million dirhams since its 2021 launch.
“We aimed to create a simple, digital platform where investors can own a piece of Dubai in under three minutes,” said Stake co-founder and co-CEO Rami Tabbara. “It’s as seamless as shopping on Amazon.”
